A new analysis from the Bipartisan Policy Center (BPC) found that less than than 6% of the overall child care market, comprised of 670,000 businesses that employ 1.5 million workers, received a PPP loan.
The child care industry received similar PPP amounts as sectors such as public administration, management, and utilities companies. However, the size of the child care industry is disproportionately large compared to these sectors, suggesting inequitable access to PPP funds for child care programs. Meanwhile, PPP reportedly still has roughly $130 billion in its coffers, which suggests that inadequate funding has little to do with child care providers’ inability to access loans.
While data on the number of child care programs that applied for the PPP is unavailable, it’s clear that only a small fraction of the potential applicants received funding— which is concerning for an industry that is so vital to our economic recovery. The vast majority of loans to child care providers were under $150,000, with only 11% of loans above this threshold.
Overall, the program helped to retain 31% of the child care workforce. Across the U.S., the SBA estimates that between 72% to 96% of small business payroll was covered by the loan program.
Click here learn more and view a state-by-state breakdown of PPP funding that went to the child care industry.